GoPro Reports 18% Revenue Decline and $16.4 Million Net Loss in Q2 2025

GoPro, Inc. reported a significant decline in financial performance for the second quarter of 2025, with revenue totaling $152.6 million, down 18% from $186.2 million in the same period last year. The decrease was primarily attributed to lower sales of cameras and accessories, which saw a 29% drop in units shipped, totaling 408,000 compared to 576,000 in the prior year. Despite the revenue decline, the average selling price of cameras increased by 15.7% to $374, reflecting a shift towards higher-priced models. The company also reported a net loss of $16.4 million, a substantial improvement from the $47.8 million loss recorded in the same quarter of 2024.

In terms of operational changes, GoPro has implemented restructuring plans aimed at improving efficiency and reducing costs. The company reduced its workforce by 25% in 2024, which contributed to a 33% decrease in research and development expenses to $30.5 million for the second quarter of 2025. Sales and marketing expenses also fell by 39% to $25.3 million, reflecting a strategic shift to lower promotional activities. The overall operating expenses decreased by 33% year-over-year, leading to an operating loss of $14 million, significantly less than the $46.5 million loss reported in the previous year.

GoPro's subscription services have shown resilience, with subscription and service revenue accounting for 27% of total revenue in the second quarter, up from 26.4% in the same period last year. The company reported a 56% attach rate for subscriptions from camera sales, indicating a growing trend in customer engagement with its services. The aggregate retention rate for annual subscribers remained stable at 68%, suggesting that existing customers continue to find value in GoPro's offerings.

Geographically, revenue from the Americas increased by 11% to $98.8 million, while sales in Europe, the Middle East, and Africa (EMEA) and Asia-Pacific (APAC) regions saw significant declines of 46% and 43%, respectively. This disparity highlights the challenges GoPro faces in international markets, which are affected by macroeconomic conditions and competitive pressures. As of June 30, 2025, the company had $58.6 million in cash and cash equivalents, down from $102.8 million at the end of 2024, and an accumulated deficit of $744.7 million.

Looking ahead, GoPro's management remains cautious about the future, citing ongoing macroeconomic challenges such as inflation, fluctuating interest rates, and competition. The company is focused on maintaining liquidity and operational stability, with plans to manage inventory levels and working capital effectively. GoPro has also entered into a new credit agreement to bolster its financial position, which includes a second lien credit facility of up to $50 million. The company aims to leverage its restructuring efforts and product innovations to drive profitability and growth in the coming quarters.